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Federal Communications Commission DA 16-802
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
SCMS, Inc.
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)
)
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File No.:  EB-SED-16-00022161
1
CITATION AND ORDER
ILLEGAL MARKETING OF UNAUTHORIZED RADIO FREQUENCY DEVICES
Adopted:  September 23, 2016 Released:  September 27, 2016
By the Chief, Spectrum Enforcement Division, Enforcement Bureau: 
I. NOTICE OF CITATION
1. This CITATION AND ORDER (Citation) notifies SCMS, Inc. (SCMS) that it marketed 
in the United States uncertified external RF power amplifiers and LPFM transmitters capable of operating 
on frequencies below 144 MHz. SCMS should cease marketing these devices and take immediate steps 
to come into compliance with the Communications Act of 1934, as amended (Act), and the Commission’s 
rules (Rules).  If SCMS fails to comply with these laws, it may be liable for significant fines. 
2. Notice of Duty to Comply with the Law:  We issue this Citation pursuant to Section 
503(b)(5) of the Act, which states that the Commission may not impose monetary forfeitures against non-
regulatees who violate the Act or the Rules unless and until: (a) the Commission issues a citation to the 
violator; (b) the Commission provides the violator a reasonable opportunity to respond; and (c) the 
violator subsequently engages in conduct described in the citation.
2
  Accordingly, SCMS is hereby on 
notice that it must comply with Section 302(b) of the Act and Sections 2.815(b) and 73.1660(a)(2) of the
Rules.
3
  If SCMS subsequently engages in any conduct of the type this Citation describes, SCMS may be 
subject to civil penalties, including but not limited to, substantial monetary forfeitures.  In assessing such 
forfeitures, the Commission may consider both the conduct that led to this Citation and the conduct 
following it.
4
II. BACKGROUND 
3. The Enforcement Bureau’s Spectrum Enforcement Division (Division) received a 
complaint alleging that SCMS is importing and marketing uncertified external RF power amplifiers and 
LPFM transmitters manufactured by BW Broadcast Limited (BW Broadcast). On November 8, 2013, 
Division staff observed the following external RF power amplifiers for sale on SCMS’s website, 
www.scmsinc.com: BW Broadcast PA150, BW Broadcast PA300, BW Broadcast PA600 and BW   
                                                     
1
The investigation initiated under File No. EB-SED-13-00009675 was subsequently assigned File No. EB-SED-16-
00022161.  Any future correspondence with the FCC concerning this matter should reflect the new case number.
2
See 47 U.S.C § 503(b)(5).  
3
47 U.S.C. § 302(a)(b); 47 CFR §§ 2.815(b), 73.1660(a)(2). 
4
See S. Rep. No. 95-580, 95th Cong., 1st Sess. at 9 (1977) (If a person or entity that has been issued a citation by 
the Commission thereafter engages in the conduct for which the citation of violation was sent, the subsequent notice 
of apparent liability “would attach not only for the conduct occurring subsequently but also for the conduct for 
which the citation was originally sent.”) (emphasis added).
Federal Communications Commission DA 16-802
2
Broadcast PA 1000.
5
  On the same date, Division staff observed the following transmitters on SCMS’s 
website:  TX25 V2, TX50 V2, TX150 V2, and TX300 V2.
6
  On November 15, 2013, the Division issued 
to SCMS a letter of inquiry (LOI)
7
directing the company to submit a sworn written response to a series of 
questions relating to the allegation.  
4. In its December 13, 2013 response,
8
SCMS confirmed that it imports and markets 
products manufactured by BW Broadcast (a company registered in the UK), including the “PA series 
amplifiers”
9
and the LPFM transmitters identified in the LOI.
10
  SCMS stated that the external power 
amplifiers and LPFM transmitters have FCC certification and provided a letter from BW Broadcast to 
support its claim.
11
BW Broadcast states that the external RF amplifiers marketed by SCMS are identical 
to the amplifiers integrated in the certified FM transmitters manufactured by BW Broadcast.
12
  According 
to BW Broadcast, “an FM amplifier that is part of a certified FM transmitter, which essentially has the 
same conducted and RF characteristics as the transmitter is deemed to be compliant” with the FCC rules 
and regulations.
13
  In addition, BW Broadcast asserts that the transmitters imported and marketed by 
SCMS “are by all intents and purposes the same models already certified by an FCC approved test 
lab....”
14
  
III. APPLICABLE LAW AND VIOLATIONS
5. Section 2.815(b) of the Rules states that “No person shall manufacture, sell or lease, offer 
for sale or lease (including advertising for sale or lease) or import, ship or distribute for the purpose of 
selling or leasing or offering for sale or lease, any external radio frequency power amplifier capable of 
operation on any frequency or frequencies below 144 MHz unless the amplifier has received a grant of 
certification….”
15
  Contrary to BW Broadcast’s belief, an amplifier that is sold as part of a certified FM 
transmitter may not be marketed as a stand-alone product without first obtaining a separate certification. 
Additionally, Section 73.1660(a)(2) of the Rules states that an LPFM transmitter shall be certified for 
compliance with the requirements of the Rules.
16
  BW Broadcast’s contention that the transmitters 
marketed by SCMS are essentially the same as its already certified transmitters does not exempt those 
models from the certification requirement.  Accordingly, based upon the information before us, we find 
that SCMS marketed the aforementioned BW Broadcast external RF power amplifiers and LPFM 
transmitters without Commission authority.  
                                                     
5
See SCMS, Inc., http://www.scmsinc.com (last visited July 14, 2016).  On the recent visit to the website, Division
staff observed that SCMS, Inc. marketed the BW Broadcast PA300, BW Broadcast PA600 and BW Broadcast 
PA1000.
6
On July 14, 2016, Division staff observed that SCMS, Inc. marketed the following transmitters on its website: 
TX50 V2 and TX300 V2.
7
Letter from John D. Poutasse, Chief, Spectrum Enforcement Division, Enforcement Bureau, to Mr. Bob Cauthen, 
President, SCMS, Inc. (November 15, 2013) (on file in EB-SED-16-00022161).
8
Letter from Bob Cauthen, President, SCMS, Inc., to Karen Mercer, Spectrum Enforcement Division, FCC 
Enforcement Bureau (December 13, 2013) (on file in EB-SED-16-00022161).
9
Id. at 1-2.
10
Id. at 2-3.
11
Id. at Attachment D (Letter from Scott Incz, CEO, BW Broadcast Limited to Mr. Bob Cauthen, President, SCMS, 
Inc. (undated) (on file in EB-SED-16-00022161)).  
12
Id. at 1.
13
Id.
14
Id.
15
See 47 CFR § 2.815(b).
16
See 47 CFR § 73.1660(a)(2).
Federal Communications Commission DA 16-802
3
IV. OPPORTUNITY TO RESPOND TO THIS CITATION
6. SCMS may respond to this Citation within 30 calendar days from the release date of this 
Citation by either of the following methods:  (1) a written statement, (2) a teleconference interview, or    
(3) a personal interview at the Commission Field Office nearest to SCMS’s place of business.  If SCMS 
requests a teleconference or personal interview, please contact Karen Mercer at (202) 418-2647.  We note 
that such teleconference or interview must take place within 30 calendar days of the release date of this 
Citation.  If SCMS prefers to submit a written response with supporting documentation, it must send the 
response within 30 calendar days of the release date of this Citation to the contact and address provided in 
paragraph below.
7. All written communications should be sent to the address below.
Neal McNeil, Assistant Division Chief
Specturm Enforcement Division
Enforcement Bureau
Federal Communications Commission
445 12
th
Street, S.W.
Washington, D.C.  20554
Re: EB-SED-16-00022161
8. Upon request, the Commission will make reasonable accommodations for persons with 
disabilities.  If applicable, SCMS should provide a description of the accommodation required, and 
include as much detail as possible, and also provide a telephone number and other contact information.  
SCMS should allow at least five business days advance notice; last minute requests will be accepted, but 
may be impossible to fill.  SCMS should send an e-mail to fcc504@fcc.gov or call the FCC’s Consumer 
& Governmental Affairs Bureau:
      For sign language interpreters, CART, and other reasonable accommodations: 
202-418-0530 (voice), 202-418-0432 (tty);
      For accessible format materials (braille, large print, electronic files, and audio format): 
202-418-0531 (voice), 202-418-7365 (tty).  
9. We advise SCMS that it is a violation of Section 1.17 of the Rules
17
for any person to 
make any false or misleading written or oral statement of fact to the Commission.  Specifically, no person 
shall:
(1) In any written or oral statement of fact, intentionally provide material factual 
information that is incorrect or intentionally omit material information that is 
necessary to prevent any material factual statement that is made from being 
incorrect or misleading; and
(2) In any written statement of fact, provide material factual information that is 
incorrect or omit material information that is necessary to prevent any material 
factual statement that is made from being incorrect or misleading without a 
reasonable basis for believing that any such material factual statement is correct 
and not misleading.
10. Further, the knowing and willful making of any false statement, or the concealment of 
any material fact, in reply to this Citation is punishable by fine or imprisonment.
18
                                                     
17
47 CFR § 1.17.
18
18 U.S.C. § 1001.
Federal Communications Commission DA 16-802
4
11. Violations of Section 1.17 of the Rules or the criminal statute referenced above may 
result in further legal action, including monetary forfeitures pursuant to Section 503 of the Act.
12. Finally, we warn SCMS that, under the Privacy Act of 1974,
19
Commission staff will use 
all relevant material information before it, including information disclosed in interviews or written 
statements, to determine what, if any, enforcement action is required to ensure SCMS’s compliance with 
the Act and Rules.
V. FUTURE VIOLATIONS
13. If, after receipt of this Citation, SCMS again violates Section 302(b) of the Act and
Sections 2.815(b) and 73.1660(a)(2) of the Rules by engaging in conduct of the type described herein, the 
Commission may impose sanctions for each such violation.  For example, the Commission may impose 
monetary forfeitures of up to $16,000 for each such violation or each day of a continuing violation, and 
up to $122,500 for any single act or failure to act.
20
The Commission may further adjust the forfeiture 
reflecting enumerated statutory factors, which include the nature, circumstances, extent, and gravity of the 
violation, and with respect to the violator, the degree of culpability, any history of prior offenses, ability 
to pay, and other such matters as justice may require.
21
  Further, as discussed above, the Commission may 
assess forfeitures on both the conduct that led to this Citation and the conduct following it.
22
VI. ORDERING CLAUSES
14. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 4(j) of the Act,
23
SCMS, Inc. must cease and desist from marketing the aforementioned BW Broadcast external RF power 
amplifiers and LPFM transmitters in violation of Section 302(b) of the Act and Sections 2.815(b) and 
73.1660(a)(2) of the Rules.
24
  
15. IT IS FURTHER ORDERED that a copy of this Citation and Order shall be sent by 
first class mail and certified mail, return receipt requested, to Mr. Bob Cauthen, President, SCMS, Inc., 
10201 Rodney Boulevard, Pineville, North Carolina 28134.  
FEDERAL COMMUNICATIONS COMMISSION
Bruce D. Jacobs
Chief
Spectrum Enforcement Division
Enforcement Bureau
                                                     
19
5 U.S.C. § 552a(e)(3).
20
See 47 U.S.C. §§ 401, 501, 503; 47 CFR § 1.80(b)(7) (2013).  This amount is subject to further adjustment for 
inflation (see 47 CFR § 1.80(b)(9)), and the forfeiture amount applicable to any violation will be determined based 
on the statutory amount designated at the time of the violation.
21
See 47 U.S.C. § 503(b)(2)(E); 47 CFR § 1.80(b)(8).
22
See supra paragraphs 3-4.  
23
47 U.S.C. §§ 154(i), 154(j).
24
47 U.S.C. § 302(a)(b); 47 CFR §§ 2.815(b), 73.1660(a)(2).